10-Q · May 6, 2026
Stewart Information Services Corporation (STC) posted strong Q1 2026 results, with revenue of $781.3 million and adjusted EPS of $0.78, significantly exceeding expectations. The title segment saw a 21% revenue increase,…
Earnings analysis · 10-Q
STC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Stewart posted Q2 revenue of $899.238 million and GAAP EPS of $1.21, with both improving from Q1 2026 and EPS rising from $1.13 in the prior-year quarter. Growth was broad based: Title operating revenues rose 15% to…
Read full summary
Stewart posted Q2 revenue of $899.238 million and GAAP EPS of $1.21, with both improving from Q1 2026 and EPS rising from $1.13 in the prior-year quarter. Growth was broad based: Title operating revenues rose 15% to $683.6 million and Real Estate Solutions rose 75% to $197.4 million, although Title pretax margin fell to 6.9% from 8.1%. Six-month operating cash flow improved to $56.0 million, but capital expenditures of $41.9 million and debt of $646.7 million temper the otherwise constructive operating trends.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.21
What stood out
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Revenue and GAAP EPS accelerated
Q2 revenue was $899.238 million, up from $781 million in Q1 2026 and approximately $722 million in Q2 2025. GAAP diluted EPS was $1.21, up from $0.55 in Q1 and $1.13 a year earlier.
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Real Estate Solutions delivered outsized growth
Real Estate Solutions operating revenue rose $84.7 million, or 75%, to $197.4 million, while pretax income increased $11.8 million to $18.5 million and pretax margin expanded to 9.4% from 6.0%.
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Commercial title activity strengthened
Title operating revenue increased $91.1 million, or 15%, to $683.6 million. Domestic commercial revenue increased $15.2 million, or 20%, to $89.8 million, supported by higher transaction volume and larger data-center transaction sizes.
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Claims experience remained favorable
Title loss expense was 3.2% of title operating revenues, improving from 3.6% a year ago; known claims reserves declined to $65.4 million at June 30, 2026 from $84.8 million at December 31, 2025.
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Operating cash generation and liquidity improved
Six-month operating cash flow improved $32.5 million to $56.0 million from $23.5 million. The company reported $914.9 million of total cash and investments at June 30, 2026.
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Employee-cost leverage improved
Employee costs declined to 27.4% of operating revenues from 29.5%, reflecting revenue leverage, despite average headcount increasing to approximately 8,200 from approximately 7,000.
What to watch
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Title profitability lagged revenue growth
Title pretax income declined $0.7 million to $48.6 million despite 15% revenue growth, and title pretax margin contracted 120 basis points to 6.9% from 8.1%.
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Higher debt balances increased interest burden
Total debt was $646.7 million at June 30, 2026, including $200.0 million drawn on the credit facility and $446.4 million of Senior Notes. First-half interest expense increased $5.2 million, or 52%, due primarily to the higher credit-facility balance.
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Rate-sensitive income and housing demand remain risks
Investment income declined $1.4 million, or 9%, to $14.8 million as lower rates and escrow balances reduced earned interest. Management noted the 30-year fixed mortgage rate averaged 6.4% in Q2 2026, still elevated despite being below 6.8% a year earlier.
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No material risk-factor updates
Risk-factor disclosure contained 0 material changes from the 2025 Form 10-K. The filing continues to identify adverse real-estate activity, mortgage-rate changes, title-loss reserve uncertainty, technology implementation, and cybersecurity as key risks.
Management's outlook
The 10-Q provides no company numeric revenue or EPS guidance. Management cited industry forecasts that third- and fourth-quarter 2026 mortgage originations will be comparable with 2025, existing-home sales may improve approximately 3% for full-year 2026, and 30-year mortgage rates are expected to remain relatively stable after averaging 6.4% in Q2 2026.
Earlier filings 4
10-K · February 27, 2026
Stewart positions itself as an integrated title insurer and real estate technology/services provider focused on end-to-end, technology-enabled transaction workflows and selective M&A (10-K references trademarked…
10-Q · August 5, 2025
Stewart reported a strong Q2 2025 with consolidated revenue near $722M and diluted EPS of $1.13, driven by a 19% YoY increase in the title segment and 22% YoY growth in real estate solutions. Margins expanded: operating…
10-Q · May 7, 2025
Stewart reported first quarter 2025 net income attributable to Stewart of $3.1 million (diluted EPS $0.11), roughly flat with Q1 2024, while consolidated revenue was about $612.0 million. Revenue growth was driven by…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.